Palladium prices have surged sharply in late 2025, reaching levels around 1,739 USD per troy ounce on December 18, up 3.45 percent in a single day and 23.24 percent over the past month.https://tradingeconomics.com/commodity/palladium This strong rebound, hitting a 34-month high of 1,668 USD per troy ounce, is pulling platinum prices higher through their close links in the auto industry.https://tradingeconomics.com/commodity/palladium Platinum, which climbed 16 percent in the third quarter of 2025 alone, now trades at a premium to palladium, reversing years of substitution where car makers swapped cheaper platinum for pricier palladium in catalytic converters.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdfhttps://www.ipmi.org/news/platinums-80-surge-3-hidden-forces-driving-it
These two metals play similar roles in cleaning exhaust from gasoline engines, so their prices often move together. Back when palladium spiked above 3,500 USD per ounce years ago while platinum hovered near 1,000 USD, automakers loaded up on platinum to cut costs. Now, with palladium rebounding over 63 percent this year and platinum up nearly 80 percent, that shift is flipping.https://www.ipmi.org/news/platinums-80-surge-3-hidden-forces-driving-it Experts note this reciprocal substitution dynamic: a rise in one metal lifts the other as buyers adjust.https://www.ipmi.org/news/platinums-80-surge-3-hidden-forces-driving-it
Palladium’s climb got extra push from supply worries tied to policy and geopolitics. A U.S. anti-dumping probe found Russia, a top producer, was flooding markets with cheap palladium, hurting domestic supply, and officials plan action.https://www.ipmi.org/news/platinums-80-surge-3-hidden-forces-driving-it Plus, the European Commission eased its 2035 ban on combustion engines, signaling more life for gasoline cars and their need for these metals.https://tradingeconomics.com/commodity/palladium Palladium forecasts for late 2025 show quarterly averages hitting 1,421 USD, far above earlier dips to under 1,000 USD.https://www.bullionvault.com/gold-news/infographics/ai-gold-precious-metal-price-forecasts
Platinum benefits directly from this momentum. Its market faces a deficit of 692,000 ounces in 2025, with demand up 28 percent in Q3 while supply stayed flat.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf Jewelry demand in China rose 8 percent, and investors piled in amid broader precious metals buying.https://platinuminvestment.com/files/954835/WPIC_Platinum_Quarterly_Q3_2025.pdf Platinum hit 1,890 USD recently, eyeing 1,988 USD next, while palladium pushes toward 1,730 USD.https://www.fxstreet.com/analysis/precious-metals-gold-silver-platinum-palladium-202512180600 Though platinum has more diverse uses like jewelry at 26 percent of demand versus palladium’s 80 percent in autocatalysts, the palladium surge amplifies platinum’s gains.https://www.ipmi.org/news/platinums-80-surge-3-hidden-forces-driving-it
Market watchers see palladium’s rally spilling over, with platinum quarterly averages climbing from 973 USD early 2025 to over 1,597 USD by December.https://www.bullionvault.com/gold-news/infographics/ai-gold-precious-metal-price-forecasts Even as forecasts differ, with some AI models and analysts eyeing palladium at 1,117 to 1,248 USD by year-end, the real-time surge keeps lifting both metals.https://www.bullionvault.com/gold-news/infographics/ai-gold-precious-metal-price-forecasts